Saturday September 15, 2012
RAM to closely monitor Pacific & Orient
PETALING JAYA: RAM Ratings will be closely monitoring developments at insurer Pacific & Orient Bhd, which recently obtained central bank approval to commence preliminary negotiations for the proposed divestment of the company's 49% stake in subsidiary Pacific & Orient Insurance Co Bhd to Sanlam Ltd.
The rating agency said in a release that it would assess the impact on Pacific & Orient Insurance's ratings as and when sufficient details were available, taking into consideration the credit strength of its new shareholder and the degree of affiliation between the two entities.
“Pacific & Orient Insurance's respective long- and short-term claims-paying ability ratings currently stand at A2 and P1; its subordinated notes programme of up to RM150mil carries an A3 rating. Both long-term ratings have a stable outlook,” it added.